Credit and Climate Top Mike Mayo’s Bank Earnings Watchlist
- Bank results start on Wednesday with JPMorgan, Goldman, Wells
- KBW Bank Index retreats from Monday’s record on vaccine worry
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Investors should keep an eye on credit trends, capital markets, potential share buybacks and expenses when banks report first-quarter earnings this week, according to Wells Fargo analyst Mike Mayo.
Climate issues are also moving toward the spotlight for the first time as well, joining traditional themes like the yield curve and the mortgage market, Mayo said in a phone interview. He cited getting his first-ever question on climate from a banks investor, not an ESG-oriented investor, in recent weeks, and added that Citigroup Inc.’s new Chief Executive Officer Jane Fraser spoke about climate on her first day on the job. The Federal Reserve and others are also making new regulatory efforts in the space.